WHO IS EXCLUDED?

AT LEAST THREE MILLION PEOPLE AFFECTED

 

3m_EXCLUDED_TAXPAYERS_FBG

On 20th March, when Chancellor Rishi Shunak first announced the packages being put in place to support people’s income, he said these were “unprecedented measures for unprecedented times". 

The Chancellor has since frequently stated that he will do “whatever it takes to protect people and businesses from the effects of the pandemic”. 

Devastatingly, despite this, a number of groups have fallen massively through the cracks, which is exactly why ExcludedUK was set up. 

For a full breakdown of the numbers behind the 'Three Million ExcludedUK Taxpayers' - see our full report HERE

 

Are any of these you?

 

  • New starters: individuals who had started work, or who were due to start work, after the Government’s designated cut-off date (initially announced as 28 February and subsequently extended to 19 March) and who were therefore deemed ineligible for support under the CJRS. Also, those individuals who started work before the cut-off date but are still ineligible for support because their employer had not submitted the required paperwork to add them to the payroll.
  • Self-employed with annual trading profits in excess of £50,000: individuals who are ineligible for support from the SEISS. A self-employed person will only receive 80 per cent of their average three-month trading profits, not their revenue.
  • Directors of limited companies who take a large proportion of their income in dividend and are only entitled to claim support under CJRS on the typically small PAYE component of their income. If they do furlough themselves then they are not allowed to work in the business which is in contrast to the SEISS. Any directors who submit their PAYE annually and missed the RTI cut-off date are not entitled to claim under the CJRS.
  • Freelancers and short term contractors: Those on short term PAYE contracts and/or self-employed work. They have missed out on support from the CJRS or the SEISS because either: they were not in a contract at the designated cut-off date; more than half of their income has not come from self-employment; their employer could not afford to keep them on the payroll until the government’s financial support became available; or their employer does not want to apply for support under the scheme on their behalf.
  • Self-employed with less than half their income from self-employment:  This is based on their 2018/19 tax return or the average of the three financial years leading up to and including 2018/19.  If, for example, 40 per cent of their income is self-employed, and 60 per cent of their income is from being an employee, or from in addition from a combination of dividends, savings, pensions or taxable benefits, they are not eligible for any self-employed support.
  • Newly self-employed: Individuals who set themselves up in business from 6 April 2019 do not meet the eligibility criteria for either the CJRS or SEISS and a 2018–19 tax return is a key eligibility criteria for the SEISS.
  • Self-employed who missed self-assessment cut-off date: If a self-employed person had not submitted their self-assessment tax return for 2018–19 by 23 April they are not eligible for the SEISS.
  • Employees who receive PAYE Tronc payments: some employees, eg in the hospitality industry have tips collected electronically and then included in their pay slips. Despite these payments potentially making up a large proportion of an employee’s regular income, and being subject to income tax, they are not currently considered as wages in the furlough pay calculations.
  • Employees made redundant: This includes those who were made redundant before 28 February and not eligible to be included in the CJRS. It also includes those made redundant after 28 February, but before 19 March whose previous employer does not agree, for whatever reason, to re-employ them and place them on temporary leave.
  • Workers employed by an individual: eg as a nanny or an au pair—may not be eligible for the CJRS if their employer does not use HMRC’s RTI system.
  • Employees who receive discretionary commission: this can make up a significant element of their income but is excluded from the CJRS. This means that while they may receive a proportion of CJRS income, it can be significantly lower than they would normally receive.
  • Employees who have to halt work for personal reasons: If an employee has to reduce or cancel work due to their own circumstances, such as caring for an isolating relative or to look after children, they will not receive support from the CJRS.
     
  • Self-employed on maternity leave: Individuals who have been on maternity leave during the three-year period of average profits will have their income reduced, because their income will have been lower than in other years where they were not on maternity leave.
  • Individuals receiving income through furnished holiday lettings: for some this is their main source of income. However, as it is not classified by HMRC as self-employment trading income, those receiving it are not eligible for the SEISS in contrast to those who run a Bed and Breakfast. 

I'm Excluded - WHAT NEXT?

This is not an exhaustive list of those excluded from meaningful support by any means but it captures a large proportion of the main groups affected. 

We urge the Government to recognise the unfairness and disparities resulting from these exclusions in the Government support measures, and consistently and persistently call for urgent redress.

Here at ExcludedUK, the team are working tirelessly lobbying the Government, driving awareness in the national media and building a community to help as many people as we can get through these times. 
 

What can you do?

We are doing all we can to drive support and awareness - There are many ways you can help

WRITE TO YOUR MP
Get Involved

Join our brand new online forum and have discussions with others in the same boat.

Learn More
Share your Story

Be a voice of the ExcludedUK community in the media and submit your case study

Learn More
Join the Conversation

Our private Facebook group is the fastest-growing community of it's kind

Learn More